Article 35 If it is necessary to return any goods originally imported into the areas beyond the park out of China or to re-transport any originally exported goods back to China, the goods may not be transported into or out of China by crossing the park or been transported into the park for storage.

If the goods originally imported into the areas beyond the park that is replaced under the provisions on goods imported at zero cost for replacement purposes are kept in the areas beyond the park and not shipped out of China, they may not be transported into the park areas.

Section III Supervision Over Goods Within the Park

Article 36 Goods in the park may be circulated freely. When transferring or conveying goods, enterprises in the park shall, by electronic means, file such matters as the name of the goods, quantity, and amount with the Customs for record, and shall go through formalities for verification after the goods are transferred or conveyed.

Article 37 No enterprise in the park may make mortgage, pledge, lien on the goods in stock, nor may it appropriate the goods for other purposes, or make other disposal without approval of the competent Customs in the park.

The provisions of the preceding paragraph of this Article shall be applicable to the tax-free goods and articles that are transported into the park under the provisions of Article 21 of these Measures.

Article 38 Enterprises in the park may perform circulative simple processing and value-added services on the goods stored therein, including grading and classification, dismantling and sorting out, separate packing, measuring, combination packaging, fixing films, adding shipping marks, mark labeling, changing package, and assembling, and other auxiliary operations that lead to increase in commercial value.

Article 39 An enterprise that applies for engaging in maintenance business within the park shall have the qualification of a legal entity, and shall be registered and filed for record with the competent Customs in the park. The products and the components and parts thereof under the maintenance of enterprises in the park shall come only from foreign countries, and the products after testing and maintenance, the replaced components and parts, as well as the materials produced during the process of maintenance shall be shipped out of China.

Article 40 From the day of carrying out business, enterprises in the park shall go through formalities for reporting for verification with the competent Customs in the park each year. The competent Customs in the park shall verify the inventory within 30 days as of the date of receipt of the application for reporting for verification. The relevant account books and original data of the enterprises shall be preserved for at least three years from the day when the inventory verification is completed.

Article 41 When domestic export goods transported into the park for which tax refund formalities have not been gone through, need to be returned to the export enterprises due to the reason of quality or specifications, the enterprise concerned in the park shall, within one year from the day when the goods are declared to be transported into the park, file an application to the competent Customs in the park , and provide the certificate issued by the competent tax authority at the locality of the export enterprise, certifying the export tax refund has not been handled. After the competent Customs in the park grants approval for it, the enterprise may go through the formalities for returning the goods without paying export tax, import value-added tax and consumption tax. If the Customs have collected export tax, the export tax collected shall be refunded. If the goods are transported into the park areas by way of transit, the competent Customs in the park shall handle the relevant formalities after the enterprise in the park has presented the form of contact for returning the goods issued by the Customs at the place of consignment.

In case any entry goods that have not undergone circulative simple processing need to be shipped out of China in their original status, the enterprise in the park may apply for going through returning formalities to the competent Customs in the park.

In case there is necessity to return any goods that have gone through export tax refund formality or have been subject to circulating simple processing (including entry goods), the Customs formalities shall be handled in light of the relevant provisions on import and export goods.

Article 42 Apart from the goods that have undergone circulative simple processing, if it is necessary to return any goods that enter into the park from the areas beyond the park to the export enterprises for replacement in their original status due to inconformity of quality, specifications, and types with the contract, or other reasons, the enterprise in the park shall, within one year from the day when the goods are declared to be transported into the park, go through formalities for returning the goods for replacement with the competent Customs in the park. The Customs shall handle the formalities according to the relevant provisions of the Measures of the Customs of the People's Republic of China for the Administration of Tax Collection on Import and Export Goods.

In case the replacements are transported into the park, they may be exempt from export license and export tax, but the Customs shall not issue the certification page of the declaration form of export goods.

Article 43 Where an enterprise in the park needs to carry out the business of storage of dangerous chemicals and flammables and explosives, it shall obtain the administrative licenses from the relevant departments of work safety, fire control, and environmental protection, etc., and report to the competent Customs in the park for record. The relevant storage tanks, devices, equipment and other facilities shall comply with the requirements of Customs supervision.

Goods that are transported into and out of the park through pipelines shall be equipped with measuring and testing devices, and other facilities and equipment for the convenience of Customs supervision.

Article 44 Enterprises in the park may apply for abandoning the goods other than those which may not be abandoned by declaration as prescribed by laws or administrative regulations.

The goods abandoned shall be extracted and sold off by the competent Customs in the park according to law, the income from the sale shall be disposed of by the Customs in light of the relevant provisions. After the goods are sold off according to law, the enterprises shall go through the verification formalities upon the strength of the application for abandoning this batch of goods and the relevant documents concerning extraction and selling of the goods by the competent Customs. Where the goods can not be sold off because they have no use value, the enterprises may dispose of them by themselves, and the competent Customs in the park may handle the verification formalities directly. The warehouse fees and other fees as are needed before extraction and selling of the goods by the Customs shall be borne by the enterprises themselves.

For the goods abandoned that shall be destroyed as required, the enterprises shall be responsible for destroying them, and the competent Customs in the park may dispatch officers to make supervision. The competent Customs in the park shall handle the formalities of cancellation after verification upon the strength of the certificates issued by competent departments.

Article 45 In case the goods in the park are damaged, destroyed or lost due to force majeure, enterprises in the park shall immediately report it in writing to the competent Customs in the park, explain the reasons for it, and provide the relevant proofs of the insurance and disaster identification departments. After the said proofs are recognized by the competent Customs in the park, such goods shall be handled according to the following applicable provisions:

1. If the goods are lost or are not lost but have lost use value completely, the Customs shall handle formalities for verification and tax exemption;

2. If the entry goods are damaged or destroyed, and lose their original use value but may be reused, enterprises in the park may go through formalities for returning these goods with the competent Customs in the park. If the goods are not to be returned out of China and are required to be transported to the areas beyond the park, enterprises in the park may file an application to the competent Customs in the park, and the goods shall be transported out of the park after the competent Customs in the park has granted approval to the application, and made assessment and tax collection on the use value of the goods that suffer disaster,

3. If the goods that are transported into the park from the area beyond the park are damaged or destroyed, lose their original use value but may be reused, and there is necessity to replace them or return them to the export enterprises, they may be replaced by the goods of which the name, specification, quantity, and price are the same as those of the original goods, and the enterprises in the park shall go through returning formalities with the competent Customs in the park.

Where the goods need to be returned to the areas beyond the park, and the export tax refund formalities have not been handled for them, the enterprises in the park may go through the returning formalities with the competent Customs in the park; if the export tax refund formalities have been gone through, the goods shall be handled in light of the relevant provisions on transporting the entry goods to the areas beyond the park as prescribed in item (2) of this Article.

Article 46 In case goods are damaged, destroyed, or lost due to inappropriate storage and factors other than force majeure, they shall be handled according to the following applicable provisions:

1. For the goods transported into the park from foreign countries, the enterprises in the park shall, according to the provisions on goods imported under general trade, and on the basis of the tax rate and exchange rate applicable on the day when the Customs accepts the declaration at the time when the goods are transported into the park, pay duties, import value-added tax, and consumption tax according to law to the Customs on the original value of the goods that are damaged or lost; and

2. For the goods that are transported into the park from the areas beyond the park, the enterprises in the park shall repay the relevant taxes in the domestic link that are refunded due to export, and the Customs shall handle formalities for writing off on this basis.